Unclaimed Property Compliance

Delaware Voluntary Disclosure Agreement (VDA) Process: A Step-by-Step Guide

The Delaware Voluntary Disclosure Agreement program offers businesses a smoother path to compliance with unclaimed property laws. This blog outlines the key steps involved:

I. Enrollment

• Sign and submit Form VDA-1: This initiates the program and signifies your intent to comply.

II. Information Gathering

• Compile details about your company:
  • History
  • Entities included in the VDA
  • Mergers and acquisitions
  • Reporting history
  • Records availability
  • Property types you’ll report (e.g., payroll, accounts payable/receivable, refunds)

III. Scoping Your VDA

• Define the scope for each entity:
  • Identify property types included
  • Assess record availability (trial balances, bank reconciliations, check lists, A/R aging reports)
  • Determine the look-back period (ideally to 1996)
  • Address lack of records (estimation methods)

IV. Detailed Records Review

• Conduct a thorough review of each property type for each entity.
• Utilize estimations when records are unavailable.

V. Submitting Findings to Delaware

• Present a draft report to the Delaware Department of State.
• Be prepared for potential sampling to verify your results.

VI. Settlement and Payment

• Upon Delaware’s approval:
  • Complete and submit Form VDA-2.
  • Make a remittance payment for identified unclaimed property.

VII. Addressing Other States

• Once the Delaware VDA is finalized, determine any potential exposure for unclaimed property in other applicable states.

By following these steps, you can navigate the Delaware VDA process efficiently and ensure compliance with unclaimed property regulations.

For further information and questions regarding compliance with these state unclaimed property laws, please contact a professional at PEACC.com at 410.303.5510, or email us at info@peacc.com.